SALARY SACRIFICE: MAKING EMPLOYEE BENEFITS COST-NEUTRAL

With 50% of employers planning to increase spend on financial wellbeing in place of offering wage increases and cost-of-living payments, it’s never been more important to make employee benefits sustainable. Salary sacrifice solutions can help to make employee benefits cost-neutral, freeing up the budget to utilise in other business areas. Read on to discover the financial wellbeing trends we expect in 2024 and how you can embed them within your business.

The Rewards and Employee Benefits Association (REBA) has recently published their Financial Wellbeing Research for 2023.

“Sustainability – both in terms of the long-term viability of a business and a focus on environmental, social and governance (ESG) factors – will affect financial wellbeing in the future.” REBA

The report shows that 42% of their respondents issued pay increases in line with inflation over the previous two years. 42% also paid one-off cost-of-living payments during the same period.

Looking ahead to the next two years, out of the remaining 58%, only 19% plan to provide pay increases, and only 9% still plan to offer cost of living payments.

With 61% of employees relying on their employers to offer more support during the ongoing cost-of-living crisis, it will take cost-effective, salary-stretching employee benefits to bridge the gap.

In this blog, we take a look at: 2024 ambitions and trends, the role of salary sacrifice, annual leave purchase, and SmartPay.